- Every February in Arizona, all 15 counties hold tax lien auctions. Tax liens on parcels with unpaid taxes are put up for sale. Investors are allowed to bid on each Arizona tax lien. The bidding starts at 16% and goes down from there (potentially all the way to 0%). The lowest bidder is the winning bidder and receives a certificate of purchase for the tax lien.
How do tax liens work in Arizona?
Arizona law allows an investor to receive up to 16% interest per annum on the tax lien certificate. The bidder with the lowest bid on the interest rate wins the auction on each lien. In order for the property owner to redeem the tax lien certificate, the property owner must pay the taxes plus the 16% interest.
Can someone take your property by paying the taxes in Arizona?
And if you don’t pay your taxes, there can be severe consequences. For example, if you fail to pay your property taxes, someone else can swoop in, pay the tax liability, and then ultimately claim title to your property. Under Arizona law, a tax levied on real property is a lien on the assessed property.
How do I buy a tax lien in Maricopa County?
To be eligible to bid, you must complete the following steps on the auction web site:
- Complete online registration.
- Complete IRS Form W-9, W-8BEN, or W-8BEN-E as applicable.
- Submit a deposit (online via ACH)
- Establish a budget.
- Receive bidder number assignment.
Is buying a tax lien worth it?
Property tax liens can be a viable investment alternative for experienced investors familiar with the real estate market. Those who know what they are doing and take the time to research the properties upon which they buy liens can generate substantial profits over time.
How do tax deed auctions work?
In a tax deed sale, the property itself is sold. The sale takes place through an auction, with a minimum bid of the amount of back taxes owed plus interest, as well as costs associated with selling the property. The highest bidder wins the property.
Can someone take your property by paying the taxes?
Paying someone’s taxes does not give you claim or ownership interest in a property, unless it’s through a tax deed sale. This means that paying taxes on a property you’re interested in buying won’t do you any good.
How long can property taxes go unpaid in Arizona?
When a property owner falls behind on paying taxes, county treasurers place liens on properties with delinquent property taxes. If the taxes remain unpaid after two years, the treasurers auction off those liens to investors, who then pay the delinquent tax, recouping money the counties need.
When can you foreclose on a tax lien in Arizona?
Foreclosure. After three years from the date of the tax lien sale but no later than 10 years the CP holder may begin a judicial foreclosure action to obtain ownership of the property.
How does a sheriff sale work in Arizona?
In a sheriff’s sale, the initial owner of a property is unable to make their mortgage payments and legal possession of the property is regained by the lender. The lender will then attempt to sell it to recover some, if not all, of the outstanding mortgage balance.
Does Arizona Do tax deed sales?
Tax deeded land sales are conducted by the Maricopa County Treasurer’s Office on an as-needed basis with Maricopa County acting as the agent for the State of Arizona.
How do I find tax liens in county?
The IRS has a department called the Centralized Lien Unit that you can contact at (800) 913-6050, and you will be able to find out if the IRS has placed a lien on your property.
What happens when someone buys your tax lien?
A tax lien sale is a method many states use to force an owner to pay unpaid taxes. The highest bidder gets the lien against the property. The tax collector uses the money earned at the tax lien sale to compensate for unpaid back taxes. The homeowner has to pay back the lien holder, plus interest, or face foreclosure.